Question
Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance $ 1,000 Advertising
Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:
Insurance | $ | 1,000 |
Advertising expense | 500 | |
Mortgage interest | 3,500 | |
Property taxes | 900 | |
Repairs and maintenance | 650 | |
Utilities | 950 | |
Depreciation | 8,500 | |
|
During the year, Natalie rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation. Assume there are 365 days in the year.
Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
b. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?
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